today's interest rate on one-year Canadian deposits; İe = today's interest rate on one-year U.K. deposits; and EsSIE = today's dollar/U.K exchange rate (# of $ per £) Let, iş %3D If iş = 3.0%, iş = 1.5% and EşE = $1.50, use the "approximation" uncovered interest rate parity condition to find the expected dollar/U.K. exchange rate (Eº -) to prevail in one vear %3D

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